AbstractFor many problems in ship hydrodynamics, the effects of air flow on the water flow are negligible (the frequently called free surface conditions), but the air flow around the ship is still of interest. A method is presented where the water flow is decoupled from the air solution, but the air flow uses the unsteady water flow as a boundary condition. The authors call this a semi‐coupled air/water flow approach. The method can be divided into two steps. At each time step the free surface water flow is computed first with a single‐phase method assuming constant pressure and zero stress on the interface. The second step is to compute the air flow assuming the free surface as a moving immersed boundary (IB). The IB method developed for Cartesian grids (Annu. Rev. Fluid Mech. 2005; 37:239–261) is extended to curvilinear grids, where no‐slip and continuity conditions are used to enforce velocity and pressure boundary conditions for the air flow. The forcing points close to the IB can be computed and corrected under a sharp interface condition, which makes the computation very stable. The overset implementation is similar to that of the single‐phase solver (Comput. Fluids 2007; 36:1415–1433), with the difference that points in water are set as IB points even if they are fringe points. Pressure–velocity coupling through pressure implicit with splitting of operators or projection methods is used for water computations, and a projection method is used for the air. The method on each fluid is a single‐phase method, thus avoiding ill‐conditioned numerical systems caused by large differences of fluid properties between air and water. The computation is only slightly slower than the single‐phase version, with complete absence of spurious velocity oscillations near the free surface, frequently present in fully coupled approaches. Validations are performed for laminar Couette flow over a wavy boundary by comparing with the analytical solution, and for the surface combatant model David Taylor Model Basin (DTMB) 5512 by comparing with Experimental Fluid Dynamics (EFD) and the results of two‐phase level set computations. Complex flow computations are demonstrated for the ONR Tumblehome DTMB 5613 with superstructure subject to waves and wind, including 6DOF motions and broaching in SS7 irregular waves and wind. Copyright © 2008 John Wiley & Sons, Ltd.